Strategic Alternatives

How AI infrastructure and M&A are reshaping corporate finance

AI infrastructure investment, M&A activity and evolving treasury demands are reshaping how companies access capital and manage liquidity. Vito Sperduto, Head, RBC Capital Markets U.S., Raja Khanna, Head of U.S. Corporate Banking, and Kartik Kaushik, Head of U.S. Cash Management, discuss what's driving capital deployment, how financing strategies are evolving and why treasury is becoming an increasingly strategic function. Key points: Corporate borrowers continue to navigate elevated rates, growing lender competition and an evolving private credit landscape. AI infrastructure investment and M&A activity are driving demand for financing and reshaping capital structure decisions. Treasury is moving from a cost-centre view to becoming an increasingly important part of strategic planning, capital allocation and transaction readiness. As companies manage cash across multiple markets and currencies, visibility, transparency and control remain key priorities. For borrowers, flexibility in capital structure and financing options remains a priority, while treasury teams continue to focus on liquidity visibility and working capital control. Listen and subscribe to Strategic Alternatives on Apple Podcasts, Spotify or wherever you get your podcasts. To learn more about corporate banking, treasury management, liquidity solutions or capital markets strategy, please contact your RBC Capital Markets representative or visit rbccm.com.

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China’s EV makers are already reshaping global auto markets

China’s electric vehicle leadership is reshaping the global audio industry. In this episode, host Joe Coletti speaks with Tom Narayan, Lead Equity Analyst in Global Autos at RBC Capital Markets, to explore how China built its EV advantage, why its OEMs are expanding into Europe and eyeing the U.S., and what this means for Western automakers, suppliers, and consumers. Key points: China’s EV advantage is rooted in battery supply chains, subsidies, labor costs and domestic market scale. Chinese OEMs are expanding beyond their home market through exports and localization in Europe. European OEMs may lose share, but Western suppliers could benefit if Chinese OEMs rely on them abroad. Chinese OEMs are technically ready for the U.S. market, but policy volatility and tariffs remain major barriers. Chinese consumers are shaping the next phase of electric vehicle technology through demand for autonomy and tech-forward features. Listen and subscribe to Strategic Alternatives on Apple, Spotify, or wherever you get your podcasts. If you enjoyed this episode, please leave us a review and share the podcast with others. To learn more about RBC Imagine, access the flagship report, or continue the conversation, contact your RBC representative or visit rbccm.com/imagine.

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APA Corporation is poised for an oil market shift

Amid soaring power demand and energy security concerns, will the market start to place more value on conventional oil and gas production again? Ben Rodgers believes that it will, and that APA Corporation is well placed to benefit when the moment comes. In this episode of Innovators and Ideas, he sets out the company’s strategy across diverse territories and commodities. Key Points • Oil and gas group APA Corporation has continued to explore as well as produce. • Producing oil and gas, and working across continents, offers diversified exposure. • The company has brought in Total for a joint venture in Suriname. • A major restructuring was designed to advance APA’s objective of being a cost leader.

Seizing opportunity across power, utilities and infrastructure

Global power demand is rising sharply, and geopolitical instability is accelerating the need for secure, affordable, and diversified energy systems. In this episode, host Joe Colletti speaks with Robert Kwan, Head of Global Power, Utilities & Infrastructure Research, and Maurice Choy, Canadian Energy Infrastructure Analyst, to explore how RBC Imagine themes—energy security, affordability, crisis capitalism, synthetic technologies, and shifting superpowers—are reshaping the sector. The conversation highlights how utilities, midstream operators, and infrastructure investors are navigating a world where energy transition, digital demand, and geopolitical conflict collide. As Robert notes, “this current environment is hammering home to a broad population how important energy is to everybody’s daily lives”. Key Points Geopolitical conflict is reinforcing a global “all of the above” approach to energy supply. Rising energy prices are intensifying affordability pressures across households and industries. Hyperscalers and digital platforms are rapidly becoming dominant global electricity consumers. Utilities are investing heavily in resilience to manage climate, cyber, and grid instability risks. Synthetic technologies are improving efficiency and reducing supply‑chain vulnerabilities. Canada is increasingly well‑positioned to expand global energy exports across fuels and electricity. Massive infrastructure investment is required to deliver diversified, secure global energy systems.

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Which software companies can avoid the AI ‘SaaSpocalypse’?

Software valuations remain squeezed amid dire predictions of ‘SaaSpocalypse’. But the real future of the sector is likely to be more complex, as RBC’s recent Canadian Private Tech Conference underlined. In this episode, Software Analysts Paul Treiber (Canada) and Rishi Jaluria (U.S.) reflect on the competing visions presented at the event, and consider how AI’s impact on the sector – and other industries – is playing out. Key Points • Innovation will be the key differentiator for software companies’ survival as AI disruption continues. • AI is targeting companies’ labor budgets rather than IT spend. • Software M&A remains subdued, pending a recovery in valuations. • Power constraints are limiting the scaling of AI. Introductions [00:06] Paul Treiber introduces colleague Rishi Jaluria for a discussion about the RBC Canadian Private Tech Conference, which featured 25 differentiated tech companies. Software’s future [00:40] The conference presented competing views of AI’s impact on software. Some foresee the ‘SaaSpocalypse’, with software headcount shrinking as AI self-compounds. Others are harnessing AI to move faster and say their customers are expanding software use. Vertical software firms in regulated, workflow-dense environments are better insulated from disruption. Labor impact [03:09] Rather than eating into IT budgets, AI is cannibalizing labor. Beyond software, entire industries are being disrupted. Some believe financial intermediation may disappear. Constraints on AI [04:43] AI processing is accelerating, but memory is growing more slowly and interconnect failing to keep pace, acting as a constraint. M&A [05:15] M&A activity is subdued and will only revive with a recovery in valuations. Sovereign clouds [05:52] Sovereign clouds are seen by some as a tailwind for Canadian companies. Others believe local hosting will prove unnecessary.

Why TC Energy sees renewed opportunity in Canada

With a 75-year track record under its belt, TC Energy is poised to enter a new phase of growth, thanks to a presence across North America and the growing demand for energy at home and abroad. In conversation at RBC’s Global Energy, Power and Infrastructure Conference, President and CEO François Poirier outlines the company’s current tailwinds, and why he sees particular LNG growth opportunities for Canada. Key Points • Canada has new opportunities to meet growing global demand for LNG. • TC Energy is lifting self-imposed capital allocation limits as it seeks to grow its assets across North America. • Safety, profitability and asset reliability are closely entwined in the success of the business.

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Canada’s national ambitions give hope to industrials

RBC's Canadian Industrials Conference in Toronto wrapped with more reasons for optimism than many expected. In this conference takeaway, Walter Spracklin, Director of Canadian Research and Co-Head of Global Industrials Research, debriefs with analysts Sabahat Khan, James McGarragle, and Matthew McKellar on the key themes that emerged. Steel producers are finding ways to mitigate U.S. tariffs, the freight recession is easing, and the most significant buzz centred on the government's nation-building infrastructure and defence plans. Key Points • Canada’s nation-building plans are boosting industrial confidence, while its defense strategy creates a tailwind for the country’s aerospace sector. • Tighter supply has helped to ease the long-running freight recession. • Steel suppliers are diversifying from U.S. exposure to mitigate trade tariffs. • Tariffs have also hit lumber hard, with supply tightening in response. • AI deployment is positioning the transport sector for operational efficiencies. Introductions [00:06] Host Walter Spracklin refers to RBC’s recent Canadian industrials conference in Toronto, which heard from 38 participating companies. He introduces three colleagues – Sabahat Khan, James McGarragle, and Matthew McKellar – to discuss the key themes that emerged. Freight recession eases [00:47] The freight recession dominated last year’s conference, but tighter supply driven by regulatory changes has lifted pricing, with positive impacts on rail too. Tariff impacts on industrials [02:05] Section 232 tariffs are creating direct impacts across steel-exposed industrials, while broader tariff uncertainty is delaying some large capital project decisions. Government plans inject confidence [04:30] The Canadian government’s new strategies on nation-building infrastructure are lifting confidence in the market. Its plans to increase defense spending and prioritize Canadian producers are seen as a potentially lasting tailwind for aerospace companies. Paper and forest production [9:36] Demand is poor and the lumber sector has been hit hard by tariffs. However, tighter supply has set up the industry for better conditions at lower levels of demand in future. AI and capital allocation [13:01] Other common themes at the conference were the deployment of AI to achieve efficiencies, especially in transport; and the disciplined allocation of capital, balancing organic growth with strategic M&A.

Complexity multiplies for infrastructure to power the transition

The expansion of power and infrastructure to support the energy transition is unfolding against a complex backdrop. Policy uncertainty, geopolitical tension, and shifting market forces are colliding with record investment and a rapidly evolving mix of technologies. Ralph Ibendahl, Global Head of Energy Transition and Co-head of Power Utilities for Europe, assesses the challenges and opportunities with expert colleagues from the U.S., Canada, and Australia. Key Points • Increasing global power demand is leading to growth across all power types and grids. • Policymakers need to balance affordability concerns with growth opportunities. • Recent deals include financing for a major nuclear project in Canada, and build-out of Germany’s grid. • Companies are drawing on a full mix of funding types, including infrastructure equity, private credit, and structured capital. • Many companies are turning to the public markets, where valuations are stronger. • RBC Capital Markets is guiding clients through this volatile market.

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Big-value deals set the pace in healthcare M&A

Life sciences is a hub of dealmaking activity. Over the past year, more than 30 transactions valued at $1 billion or more have crossed the finish line. But the picture in other segments of healthcare is more mixed. At RBC Capital Markets’ Global Healthcare Conference in New York, Darren Campili, Global Head of Healthcare Investment Banking, hosts colleagues David Levin, Ahmed Attia and Jason Levitz to explore what's driving deals and where the opportunities are heading. Key Points Healthcare M&A is strong, with a surge of high-value deals in life sciences. Equity performance is challenging, but investors in life sciences and biotech have seen good outcomes. IPO activity has rebounded; again, life sciences and biotech are most successful. Dealmaking has been largely unaffected by regulatory uncertainty, though challenges remain on reimbursement and MFN pricing. Larger companies believe they have the edge in using AI for profitability and competitiveness. Introductions [00:25] Host Darren Campili, Global Head of Healthcare Investment Banking, introduces the podcast and guests: David Levin, Co-Head of U.S. M&A; Ahmed Attia, Managing Director, Healthcare M&A; and Jason Levitz, Head of Healthcare Equity Capital Markets. M&A strength in healthcare [01:11] The M&A market in life sciences is extremely strong. The number of $1 billion-plus deals has tripled in the past year. There has been significant activity among mid-caps as well as large-cap companies, and a diversity of premiums. Healthcare in the equity markets [13:24] In the broader context of the U.S. equity markets, healthcare is performing poorly, particularly among large-cap medtech and services companies. At the same time, life sciences and biotechs are outperforming, leading to diverse outcomes for investors. IPO activity [15:20] IPO volumes have rebounded after some disappointing years. Deal flow has centered on oncology, I&I, and CNS. Political impact [24:15] Dealmaking has continued despite uncertainty over the FDA. Tariff policy has been a net positive for U.S. inflows as pharma businesses seek U.S. capabilities. Managing reimbursement and Most Favored Nation pricing remains challenging for some.

Investment strategy through the ‘up crash’ and beyond

The markets’ wild ride continues, with valuations defying high volatility. How long can the ‘up crash’ last, and what factors might bring about a correction? At RBC’s Global Energy, Power and Infrastructure Conference, Callie Simpkins, Managing Director, Cross-Asset Hedge Fund Sales, discusses the potential scenarios with Lori Calvasina, Head of U.S. Equity Strategy, and Amy Wu Silverman, Managing Director and Head of Derivatives Strategy.

Why is the market responding to Iran deals that fail to materialize?

A deal to end the U.S.-Iran war is constantly talked up, but has yet to materialize. Meanwhile, market reaction doesn’t seem to match “the biggest physical energy disruption in history”, as Helima Croft, Global Head of Commodity Strategy, describes it. At RBC’s Global Energy, Power and Infrastructure Conference, Helima considers the prospects for a deal and what it would take to restore global oil flows once the Strait of Hormuz reopens. Key Points • Strong inventories and stockpile releases have so far contained oil prices despite the ongoing Iran conflict. • The market continues to respond to repeated signals of an imminent end to the war. • Restoring normal levels of oil flow after the Strait of Hormuz is reopened may take months. • Issues over Iran’s nuclear program and sanctions relief will be obstacles to a lasting deal. Introductions [00:05] John Soughan, Assistant Vice President of Global Commodity Strategy and MENA Research, introduces Helima Croft, Global Head of Commodity Strategy, in a session at RBC’s Energy, Power, and Infrastructure Conference. Stockpiles limit disruption impact [00:25] The U.S.-Iran war has created history’s biggest physical energy supply disruption. So far, robust inventories and stockpile releases have provided a buffer, but shortages will become more evident in coming weeks. Peace agreement fails to emerge [03:41] The White House has repeatedly suggested a resolution is imminent. Each time the market responds with a sell-off. But a deal has yet to materialize. The IRGC controls shipping in the Strait of Hormuz and is not anxious to reach an agreement. Nuclear issues will impede deal [05:56] Nuclear capabilities and sanctions relief will be obstacles to any lasting deal. Even when the Strait of Hormuz is reopened, oil flows will be significantly lower than before the war began, because shippers and insurers will be reluctant to use it. Oil flows will take months to restore [09:41] The CEO of ADNOC has indicated it would take four months after reopening to return to 80% of pre-war oil flows.

Is this finally the breakthrough moment for psychedelic therapies?

Psychedelics are poised for a breakthrough in mainstream psychiatry, with high interest among physicians and patients alike. But does the infrastructure exist to deliver these treatments, given the clinical supervision required for administration? RBC’s researchers have been out in the field to find the answer. Brian Abrahams, Head of Global Healthcare Research, and Leonid Timashev, Biotechnology Analyst, reveal their findings on the practicalities of a psychedelics roll-out. Key Points Patient and physician interest and favorable regulation signal an imminent breakthrough for psychedelics to treat mental ill-health. April’s Presidential order on accelerated research and access for veterans with PTSD is also supportive. Psychedelics raise challenges for clinical trials, but companies are finding ways to handle these. RBC’s research indicates existing clinic infrastructure is equipped to deliver psychedelics with the required clinical supervision. Introductions [00:06] Host Joe Coletti introduces the podcast and guests: Brian Abrahams, Head of Global Healthcare Research, and Leonid Timashev, Biotechnology Analyst. The springboard for discussion is the case made in the recent RBC Imagine report that a transformation in mental health treatment is imminent. Pivotal moment for psychedelics [01:06] Psychedelic drugs have the potential to deliver effective treatment for huge unmet patient need. Expert opinion at an RBC symposium indicates high physician interest, favorable pricing and reimbursement dynamics, limited generic risk, and an increasingly clear regulatory path. Executive order on PTSD [05:06] The recent Presidential executive order, sanctioning accelerated research and access in this field specifically for veterans with PTSD, is another tailwind. Risks and challenges [06:22] Psychedelic drugs raise specific challenges in clinical trials, but these are surmountable. The biggest concern for investors is the capacity to commercialize psychedelic treatments at scale, given the need for clinical supervision. Infrastructure for delivery [07:48] RBC’s research, based on clinics already delivering Spravato, suggests psychedelic treatments could be launched within existing infrastructure. Patients are enthusiastic; clinicians are already preparing for delivery. Listen and subscribe to Strategic Alternatives on Apple, Spotify, or wherever you get your podcasts. If you enjoyed this episode, please leave us a review and share the podcast with others.

Anarchy in the UK?

Sterling markets have had a rough ride over the last few weeks. In part this is against the backdrop of the oil price shock, but it is also due to the domestic political uncertainty that has once again come to the fore. Peter Schaffrik, Head of UK/European Rates & Economics, and Cathal Kennedy, Senior UK Economist, unpick the difficult situation, provide a view on the outcome of the recent turmoil along with an outlook on what the political landscape in the UK might look like in the months and years to come.

What is driving the next phase of ETF innovation?

Once defined by low-cost index exposure, ETFs are increasingly used to deliver active strategies, structured outcomes and targeted portfolio solutions across global markets. In this episode, Bryan Johanson, Head of North American Client ETF Markets, and Valerie Grimba, Global ETF Strategist, examine how innovation, market structure and investor demand are redefining what ETFs can do – and what comes next.

Why this global crisis hasn’t knocked banks off course

The global banking sector is navigating a crosscurrent of geopolitical uncertainty, a historic regulatory reset, and powerful structural forces — from AI adoption to the rise of private credit and stablecoins. In this episode, Gerard Cassidy and Anke Reingen, Co-Heads of Global Financials Research at RBC Capital Markets, discuss where U.S. and European banks stand today and what investors should be watching next. Banks’ fundamentals are strong, but the sector is vulnerable to sustained high oil prices. Smaller regional banks are outperforming the market. AI deployment, consolidation, and a resilient credit outlook are growth drivers. U.S. regulators are supportive; European regulation is softening to match. U.S. commercial loan growth is accelerating, supported by tax changes. Investment banks are posting growth and could benefit from a revival in IPOs. Chapter markers: Introductions [00:07] Host Joe Coletti introduces the podcast and guests: Gerard Cassidy and Anke Reingen, Co-Heads of Global Financials Research. They discuss the strong underlying fundamentals of the banking industry, despite continuing risk from prolonged war in the Middle East. Growth Drivers [06:58] AI deployment, the growth of stablecoins, and continuing consolidation are among the main structural themes driving growth. Loans to NFDIs are a potential concern but banks are less vulnerable than the private credit sector. Regulation [13:30] U.S. regulation is pro-bank, and the easing of capital requirements will feed balance sheet growth, dividend payments, acquisitions, and stock buybacks. Proposed regulation in Europe may soften to ensure its sector is not disadvantaged. Lending Volume [18:15] Commercial loans, bolstered by tax changes, are the biggest element of U.S. loan volume growth. Incentives in Europe also boosted corporate loans, but confidence has since declined. Investment Banks [22:48] Deregulation is strengthening the deal pipeline for investment banks. A rush to M&A before the end date of the U.S. administration could benefit them further.

The Great Recalibration Offers a Roadmap to the Future

From fragmenting global power to widening gaps in health and wealth, disruptive forces are reshaping industries, economies and societies. RBC’s latest Imagine research identifies five new converging themes and analyzes how they might play out. In this episode, Nik Modi, Global Co-Head of Consumer Research, and Robert Kwan, Head of Global Power Utilities and Infrastructure Research, look ahead to the implications for policy, trade, and individuals. Five new forces of exponential change are explored in RBC’s latest Imagine research. These cross-sector trends are reshaping individual consumer experiences as well as geopolitics. Transformative technologies are starting to revolutionize production and supply. Geopolitical convulsions provide an opportunity for North American energy export. Businesses need to adopt strategies to stay resilient and thrive in this dynamic environment. Chapter Markers Introductions [00:10] Host Joe Coletti introduces the podcast and guests: Nik Modi, Global Co-Head of Consumer Research, and Robert Kwan, Head of Global Power Utilities and Infrastructure Research. They summarize the RBC Imagine research project and the latest update, which identifies five new globally transformative forces. Consumer Experience [05:53] The convergence of global forces is set to impact consumer experience and behavior, including through greater personalization. Retail and commerce can respond by transforming their business models. Tech and Energy [12:59] Speed to market is driving datacenter development as technology growth and energy constraints converge. The aftermath of the Iran war provides opportunity for North America, and particularly Canada, to export more energy to countries that have relied on the Middle East. Responding to Cross-Sector Forces [14:11] Companies can build resilience through measures such as partnerships, supply chain remodeling and employee training. Cross-sector opportunities are emerging from increasing energy demand.

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How Commerzbank sees the future of finance

Developments in technology, sustainability, and global competition will reshape financial institutions. In a conversation at RBC Capital Markets’ Global Financial Institutions Conference, Dr. Bettina Orlopp, CEO of Germany’s Commerzbank, explains her organization’s approach to these forces.

Is the VIX reflecting the true extent of market volatility?

What will be the long-term economic impacts of the war in the Middle East? And how will markets look when attention finally returns to the beleaguered software and private credit sectors? At RBC Capital Markets’ Financial Institutions Conference, Head of Equity Derivatives Strategy Amy Wu Silverman and U.S. Equities Macro Thematic Specialist Ben Fisher analyzed the likely effects of volatility on multiple fronts.

Beyond the Headlines: Oil, Inflation and Market Risk

As geopolitical tensions in the Middle East raise the prospect of a more prolonged energy shock, how should investors think about the implications for inflation, consumer behavior, and markets? Global Head of Commodity Strategy Helima Croft, Chief Economist Frances Donald, and Head of U.S. Equity Strategy Lori Calvasina discuss what a disruption in oil supply could mean for the macro outlook — and why the longer‑term picture may be more resilient than headlines suggest.

How sustainable finance is evolving to reflect new global realities

As electricity demand surges, geopolitical risks increase, and the physical impacts of climate change escalate, how are investors responding? In this episode, RBC Capital Markets' Global Head of Sustainable Finance Sarah Thompson reflects on the outlook for the market in the light of new global realities, in discussion with Moses Choi, Head of U.S. Sustainable Finance, and Stefano Vitali, Head of Europe and Asia Pacific Sustainable Finance.